After the Pacific Scandal, John A. Macdonald was forced to resign. In the 5 years that he was out of office from 1873 to 1878, he tried to come up with a plan to convince the rest of Canada about the importance of a transcontinental railway. The result of Macdonald's thinking was the National Policy, which he developed in 1876, and which later became the basis for the Conservative election platform in 1878. His party won the election with a large majority, and Macdonald's national policy remained an important part of Canadian government policy into the 1900's. It was based around 3 ideas:
A system of protective tariffs
Increased immigration
The building of the CPR
Protective Tariffs
In the 1870's, Canadian manufacturers were suffering because American companies were exporting low-priced goods to Canada. To solve this problem, a series of tariffs were introduced by Macdonald. Raw materials would not be taxed, allowing Canadian manufacturers to turn these into goods, but American goods would have taxes added on to them. This would protect Canadian industries by making American goods more expensive.
Immigration to the West
Macdonald encouraged immigrants who were farmers to move to the Prairies, and discouraged the development of manufacturing in the West. That way the farmers would produce and export grain, and would have to buy their manufactured goods from Ontario and Quebec. They would also not compete for the scarce industrial jobs in the East. The East became industrialized, and the West became a largely agriculture-based area.
The building of the CPR
Macdonald believed the building of the CPR would help the West to develop by transporting goods and people in and out of the region. He thought that the CPR could be used to ship goods not only across Canada, but also to and from Asia.Once his party was re-elected this became their main goal.
Quiz Yourself
1. What were the three main points of Macdonald'ss National Policy?
2. How did Macdonald's national policy relate to the Pacific Scandal?
3. Explain the purpose of each of the three main points of Macdonald's national policy.
John A Macdonald's National Policy
After the Pacific Scandal, John A. Macdonald was forced to resign. In the 5 years that he was out of office from 1873 to 1878, he tried to come up with a plan to convince the rest of Canada about the importance of a transcontinental railway. The result of Macdonald's thinking was the National Policy, which he developed in 1876, and which later became the basis for the Conservative election platform in 1878. His party won the election with a large majority, and Macdonald's national policy remained an important part of Canadian government policy into the 1900's. It was based around 3 ideas:
Protective Tariffs
In the 1870's, Canadian manufacturers were suffering because American companies were exporting low-priced goods to Canada. To solve this problem, a series of tariffs were introduced by Macdonald. Raw materials would not be taxed, allowing Canadian manufacturers to turn these into goods, but American goods would have taxes added on to them. This would protect Canadian industries by making American goods more expensive.Immigration to the West
Macdonald encouraged immigrants who were farmers to move to the Prairies, and discouraged the development of manufacturing in the West. That way the farmers would produce and export grain, and would have to buy their manufactured goods from Ontario and Quebec. They would also not compete for the scarce industrial jobs in the East. The East became industrialized, and the West became a largely agriculture-based area.
The building of the CPR
Macdonald believed the building of the CPR would help the West to develop by transporting goods and people in and out of the region. He thought that the CPR could be used to ship goods not only across Canada, but also to and from Asia.Once his party was re-elected this became their main goal.Quiz Yourself
1. What were the three main points of Macdonald'ss National Policy?
2. How did Macdonald's national policy relate to the Pacific Scandal?
3. Explain the purpose of each of the three main points of Macdonald's national policy.